{"id":4108,"date":"2019-01-01T15:01:00","date_gmt":"2019-01-01T15:01:00","guid":{"rendered":"https:\/\/fusionwm.com\/?p=4108"},"modified":"2023-01-17T16:30:45","modified_gmt":"2023-01-17T16:30:45","slug":"use-planned-giving-to-help-you-make-your-dent-in-the-universe","status":"publish","type":"post","link":"https:\/\/fusionwm.com\/use-planned-giving-to-help-you-make-your-dent-in-the-universe\/","title":{"rendered":"Use Planned Giving to Help You Make Your Dent in the Universe"},"content":{"rendered":"\n
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Do you want to have a major impact on a charity or cause that means a great deal to you? Do you want to do well financially by doing good for others in need? Do you want to leave your mark and \u201cmake a dent in the universe\u201d as Steve Jobs once talked about?<\/p>\n\n\n\n

If so, you\u2019ve got plenty of company.<\/p>\n\n\n\n

When we asked 247 highly successful business owners why they wanted to be wealthier, 71.3 percent\u2014nearly three-quarters\u2014told us they wanted to build additional wealth so they could be more meaningfully supportive of charitable causes.<\/p>\n\n\n\n

As an entrepreneur, you know that the best results usually come from the best plans\u2014and that\u2019s no different when it comes to giving.<\/p>\n\n\n\n

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Planned giving, defined<\/h1>\n\n\n\n

Planned giving<\/em> is the process of making a significant charitable gift, during your life or at death, that is part of a broader financial or estate plan. In contrast, a charitable donation made from your cash flow is not a planned gift.<\/p>\n\n\n\n

Smart planned giving is usually best accomplished as part of your overall financial situation. By taking into account the various assets you have and how they are structured, you can achieve results that are very worthwhile to all parties involved\u2014including you, your business, your family and the charitable organization. To get those results, planned giving is often coordinated with estate or income tax planning that uses advanced legal and tax strategies and\/or financial products.<\/p>\n\n\n\n

Planned gifts take a number of forms. Generally speaking, planned gifts provide you with a financial benefit on top of tax deductions\u2014benefits that were put into the tax code specifically to encourage planned giving.<\/p>\n\n\n\n

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Eight types of planned gifts<\/h1>\n\n\n\n

The best first step in planning is to understand the lay of the land. Numerous types of charitable gifts fall under the umbrella of planned gifts and planned giving.<\/p>\n\n\n\n

1. Will bequest.<\/strong> This is the simplest gift\u2014and the one that is by far the most common among those who have already made a planned gift. Through a will bequest, you leave a charitable gift in your will, and the gift does not go to the charity until the will is probated.<\/p>\n\n\n\n

A will bequest meets the personal needs of many people, and it does not require a great deal of involvement during your lifetime. Also, a will bequest does not require a lot of administrative oversight; the estate simply pays out the designated amount to the charity during the probate period. What\u2019s more, will bequests are convenient because the assets are still available to you during your lifetime. Your estate is also able to take an estate tax deduction for the value of the charitable bequest.<\/p>\n\n\n\n

2. Private foundation.<\/strong> This is a private, nonprofit organization that receives most of its contributions from a single wealthy individual or family. With a private foundation, a minimum amount of the foundation\u2019s assets must be distributed annually (currently about 5 percent).<\/p>\n\n\n\n

3. Donor-advised fund (DAF).<\/strong> <\/em>Think of DAFs as charities that invest in pooled investment vehicles similar to mutual funds. What you donate earns a federal income tax deduction for the entire gift, because the DAF is technically a nonprofit. You can then, at your own pace, pinpoint certain charities and decide how much to give to each one. The fund will send a check to the charity when you request that it do so.<\/p>\n\n\n\n

4. Charitable trusts.<\/strong> For many people with wealth and strong charitable intent, charitable trusts are extremely attractive planned gifts. There are two types of charitable trusts:<\/p>\n\n\n\n